U-Ming’s christens eco-friendly bulk carrier

The company contracted Japan’s Sumitomo Marine to commission Oshima Shipbuilding to build the vessel which is expected to be officially launched on 14 March 2022.

The 235-metre Cemtex Excellence is the first of the company’s 99,990dwt Post Panamax series built by Oshima Shipbuilding. The vessel’s eco-efficient features and enhanced digital operation system enhance efficiency and safety. The increasing size of ships reduces fuel consumption per unit cargo and lowers operating costs. Speed of navigation is optimised for low-speed operations, and the narrow streamlined design of the bridge helps to reduce wind resistance.

Market Outlook

On the demand side, many countries are competing for infrastructure improvements which will in turn increase the demand for raw materials which drives up the freight rates of bulk shipping.

However, in the second half of 2020, container shipping saw a significant increase in demand which resulted in a high volume of large container ship orders. Many yards will be occupied with container newbuilding work in the next few years leading to a slow-down in delivery of dry bulk vessels.

Added to that, the implementation of the Energy Efficiency Design Index (EEXI) and Carbon Intensity Indicator (CII) in January 2023 will mean that old ships that do not meet the regulations will be phased out.

According to Clarksons’ Dry Bulk Trade Outlook for January 2022, the growth rate of dry bulk fleet is expected to be only 2.1% in 2022 versus the demand for dry bulk shipping at about 2.5%. The expected slower pace of tonnage supply will continue to favour the dry bulk market in the short term.